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Investing.com -- Camtek Ltd . (NASDAQ:CAMT) (TASE:CAMT) reported record second quarter revenue that exceeded analyst expectations, but shares tumbled 6.6% as investors appeared to focus on the company’s modest sequential growth outlook.
The semiconductor inspection equipment provider posted second quarter adjusted earnings per share of $0.79, matching analyst estimates, while revenue reached a record $123.3 million, surpassing the consensus forecast of $121.57 million. Revenue grew 20% YoY from $102.6 million in the same quarter last year. The company achieved a non-GAAP gross margin of 51.9% and non-GAAP operating income of $37.4 million, representing a 21% increase from the year-ago period.
Looking ahead, Camtek expects third quarter revenue of approximately $125 million, which would represent only modest sequential growth from the second quarter but would achieve the company’s milestone of reaching a $500 million annual revenue run rate.
"Camtek continues to deliver record performance in 2025, with 20% year-over-year growth in revenues and strong gross margins at around the 52% level, contributing to record quarterly operating income," said Rafi Amit, Camtek’s CEO. "Our ongoing growth continues to be driven primarily by the high-performance computing applications for AI."
The company’s performance in the quarter was bolstered by strong demand in the advanced packaging segment, which is evolving to support high-performance computing for AI applications. Camtek generated $23.5 million in operating cash flow during the quarter, ending the period with $543.9 million in cash and investments.
"We believe that the new packaging technologies represent major growth opportunities for us in the coming years," Amit added, noting that the company continues to see a healthy order flow and pipeline into the fourth quarter.
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